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The metal resources (METRO) model: A dynamic partial equilibrium model for metal markets applied to rare earth elements

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  • Pothen, Frank

Abstract

This paper presents the METal ResOurces (METRO) model, a partial equilibrium model tailored for metal markets. It allows for a disaggregated representation of the mining sector and endogenous investment in extractive capacities. It can be calibrated to a large number of metal markets. Rare Earth Elements are the first group of metals for which the model is implemented. A new dataset on Rare Earth mines is compiled to calibrate it. First results on key developments of Rare Earth markets are presented. Extensive sensitivity analyses indicate their robustness.

Suggested Citation

  • Pothen, Frank, 2013. "The metal resources (METRO) model: A dynamic partial equilibrium model for metal markets applied to rare earth elements," ZEW Discussion Papers 13-112, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:13112
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    Cited by:

    1. Pothen, Frank, 2014. "Dynamic market power in an exhaustible resource industry: The case of rare earth elements," ZEW Discussion Papers 14-005, ZEW - Leibniz Centre for European Economic Research.
    2. Joris Baars & Mohammad Ali Rajaeifar & Oliver Heidrich, 2022. "Quo vadis MFA? Integrated material flow analysis to support material efficiency," Journal of Industrial Ecology, Yale University, vol. 26(4), pages 1487-1503, August.
    3. Mazzarano, Matteo, 2020. "Estimating total potential material recovery from EEE in EU28," Resources Policy, Elsevier, vol. 68(C).
    4. Pothen, Frank & Fink, Kilian, 2015. "A political economy of China's export restrictions on rare earth elements," ZEW Discussion Papers 15-025, ZEW - Leibniz Centre for European Economic Research.

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    More about this item

    Keywords

    Partial Equilibrium Model; Metals; Rare Earths; Exhaustible Resources;
    All these keywords.

    JEL classification:

    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices
    • Q37 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Issues in International Trade

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